HCL Tech Q3 results: IT major Q3 net profit falls 13.6% YoY. Announces Dividend of ₹10
HCL Technologies Q3 results were declared on Friday evening which said its consolidated net profit for the quarter ended December declined 13.6 percent to Rs 3,442 crore from Rs 3,969 crore in the corresponding quarter previous year. The Noida-based company has reported its consolidated net profit at ₹3,442 crores for the December quarter compared to the same period last year at ₹3,969 crores.
HCL Technologies Ltd reported a net profit at Rs 3,442 crore, which was up 5.4 percent quarter-on-quarter (QoQ), and revenue at Rs 22,331 crore that is up 8.1% QoQ in its earnings report for the quarter ended December 31st, 2021. The company declared a dividend of ₹10 per share for Q3 and this is the dividend payout for the 76th quarter consecutively.
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The IT giant’s earnings were 7.6% quarterly growth in CC revenue being the highest in 12 years. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the latest quarter grew 8.3% QoQ to ₹5,242 crores, while its earnings before interest and taxes (EBIT) stood at ₹4.251 crores, a QoQ increase of 8.5%.
The company said the total contract value (TCV) of its new deal was at $ 2,135 million, which is 64% YoY growth. Services TCV was at $1,968 million that is 63% YoY. The IT firm has had eight net new deal wins in the recent past. Products TCV was at $167 million, 70% YoY which includes 8 net new large deal wins, the firm said. Net cash at $2,140 million and Gross Cash at $2,666 million at the end of December 31st, 2021.
For the Fiscal Year 2022, the IT firm expects revenue to grow in the double digits in the fourth quarter and said its EBIT margin would be between 19% and 21% for the rest of the fiscal.
C Vijayakumar, CEO & MD, HCL Technologies said “Our future looks bright as we had a very strong net new booking of $ 2.1B, a 64% YoY increase. We also added more than 10,000 to our employee strength this quarter. I believe we continue to be in a vantage position to address sustained demand momentum as our investments in strategic priorities like digital, cloud, and engineering capabilities and our talent development plans are showing strong returns.
On the employee front, HCL Tech added 10,000+ employees this quarter and they believe to continue to be in a vantage position to address sustained demand momentum. The company said it had plans to hire around 20,000-22,000 this fiscal and has already hired 16,000 freshers by Q3.
An early training and career program named ‘Rise at HCL’ in the United States, HCL Tech aims to hire 12,000 new candidates in the next five years and recruit more than 2,000 graduates in the next 36 months.
HCL Tech Stock Price closed at ₹1337.20 up by 0.22% at NSE and ₹1337.55 up by 0.32% at BSE.